If you need to have an Employer Identification Number (EIN) for your business, the application process is fairly simple. Knowing what information is required can make filling out the application easier. Show If your business has one or more employees, you will need to obtain an Employer Identification Number (EIN). However, even if your company does not have employees, other situations will require an EIN. An EIN may be required by IRS, state or local government agencies, or financial institutions. Find out what an EIN is, when one is required, and how to get one. What Is an EIN?An EIN is a nine-digit number assigned by the IRS and is used by certain types of business entities to file tax documents with the federal government. It may also be needed for state government filings and financial accounts in the name of the company. The term Employer Identification Number is really an inaccurate description, as an EIN is often required for a company that does not have any employees. For this reason, it is sometimes referred to as a Taxpayer Identification Number or a Tax ID Number and abbreviated as TIN. When Is an EIN Needed?The IRS requires any business that has one or more employees to have an EIN. If you expect to hire any employees within the next year, you should get an EIN. Even if a company does not have any employees, the IRS requires an EIN for:
Even if the IRS does not require an EIN, you may find it necessary or desirable to obtain an EIN in one or more of the following situations:
How to Get an Employer Identification NumberTo apply for an EIN, you will need to file Form SS-4, Application for Employer Identification Number (EIN), with the IRS. Filing can be done online, by fax, or by mail. Online filing will get you an EIN immediately. Filing by fax takes about four days, and filing by mail takes about four weeks. The second page of Form SS-4 has a table to help you determine if you need an EIN and which lines of the form you need to fill in for each situation. For complete information, including line-by-line instructions, refer to the IRS Instructions for Form SS-4 and IRS Publication 1635, Employer Identification Number: Understanding Your EIN. Generally, the EIN application form requires you to fill in the following information:
Whether an EIN is required by the IRS, another government agency, or for some other reason, getting one is simple and easy. Just complete and file a one-page form. Filing is free and may be done online. How can I get my own EIN?To apply for an employer identification number, you should obtain Form SS-4PDF and its InstructionsPDF. You can apply for an EIN on-line, by mail, or by fax. You may also apply by telephone if your organization was formed outside the U.S. or U.S. territories.
Can I get an EIN as a self employed?A sole proprietor is a self-employed professional who can obtain an Employer Identification Number (EIN) in the same manner that corporations or LLCs would obtain the same from the IRS. You will be required to submit the completed Form SS-4 to obtain a tax ID for self employed individuals.
Does an EIN cost money?Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service.
Is an EIN the same as a tax ID?An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts.
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